- The proposed privatisation of City Office REIT (CIO US) and Orion Properties (ONL US) is a sign that the US office market has bottomed out and is beginning to recover. Both took advantage of depressed asset prices and demonstrate investors’ confidence in US office REITs.
Leasing momentum expected to recover in 2H25.
- - Read this at SGinvestors.io -
Potential resumption of lending for office landlords.
- According to Trepp, the commercial mortgage-backed securities (CMBS) market saw a resurgence with issuance volume rising 35% y-o-y to US$59.6b in 1H25, the strongest in 18 years. Office-backed CMBS of US$10b accounted for one-third of new CMBS issuance in 1Q25. The recovery is supported by an expected decline in interest rates, which improves refinancing conditions and boosts leverage for new transactions.
Lower interest rates ease stress on the office market.
- - Read this at SGinvestors.io -
- We foresee Keppel Pacific Oak US REIT’s and Prime US REIT’s average cost of debt moderating gradually to 4.8% and 5.2% respectively in 2H26.
EQDP boosts trading liquidity for KORE and PRIME.
- Read more at SGinvestors.io.
